M & A M A R K E T M O N I T O R - ArkMalibu · Software 5 Yr 4 Yr 3 Yr 2 Yr 1 Yr 1,417 1,518 1,394 1,418 1,481 13.5x 15.2x 10.4x 17.9x 14.3x 0 200 400 600 800 1,000 1,200 1,400 1,600

M&A MARKET MONITORSOFTWARE JANUARY 2019

5 Yr

4 Yr

3 Yr

2 Yr

1 Yr

23,382 23,405 21,379

19,365 19,608

11.1x 11.1x 10.8x11.8x

11.3x

-

5,000

10,000

15,000

20,000

25,000

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

2014 2015 2016 2017 2018

Dea

l C

oun

t

Med

ian

TE

V/

LT

M E

BIT

DA

M

ult

iple

Deal Count Median TEV/ LTM EBITDA Multiple

About the DataThe information presented in this report is an analysis of deals in the United States or Canada. A deal is described as any c losed or announced M&A transaction where the target is headquartered in the United States or Canada, financial terms of the transaction have been disclosed, and the target has an industry classification that falls into the subject industry group and as such may not be representative of your company's market valuation. Past performance is not indicative of future result s. Certain adjustments have been made to the information to exclude transactions which are not specific to the industry or incorporate relevant transactions for which an industry classi fication was omitted.

US & Canada M&A Market Overview

Overall Market Transactions

Source: S&P Capital IQ; ArkMalibu; Other publicly available sources

As of 12/31/2018

Software

5 Yr

4 Yr

3 Yr

2 Yr

1 Yr

1,417 1,518 1,394 1,418 1,481

13.5x

15.2x

10.4x

17.9x

14.3x

0

200

400

600

800

1,000

1,200

1,400

1,600

2014 2015 2016 2017 2018

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

16.0x

18.0x

20.0x

Dea

l C

oun

t

Med

ian

TE

V/ L

TM

EB

ITD

A

Mult

iple

Deal Count Median TEV/ LTM EBITDA Multiple

About the DataThe information presented in this report is an analysis of deals in the United States or Canada. A deal is described as any closed or announced M&A transaction where the target is headquartered in the United States or Canada, financial terms of the transaction have been disclosed, and the target has an industry classification that falls into the subject industry group and as such may not be representative of your company's market valuation. Past performance is not indicative of future results. Certain adjustments have been made to the information to exclude transactions which are not specific to the industry or incorporate relevant transactions for which an industry classi fication was omitted.

Source: S&P Capital IQ; ArkMalibu; Other publicly available sources

As of 12/31/2018

US & Canada M&A Market Overview

Software Transactions

Public Companies' Trading Metrics | SoftwareAs of: 12/31/2018

USD in millions except per share price

Last Equity Enterprise EBITDA

Price Value Value Margin 2017A LTM NTM 2017A LTMLast Sale PriceMarket CapitalizationTotal Enterprise ValueLTM EBITDA Margin %CY - 1 TEV/Total RevenuesLTM TEV/Total RevenuesNTM TEV/Forward Total RevenueCY - 1 TEV/EBITDALTM TEV/EBITDANTM TEV/Forward EBITDA

Banking & Financial Software

CoreLogic, Inc. 33.42 2,692 4,359 22.6% 2.9 2.4 2.5 14.6 10.4

NCR Corporation 23.08 2,728 6,385 12.4% 1.2 1.0 1.0 8.7 8.1

International Business Machines Corporation 113.67 103,303 136,019 21.1% 2.2 1.7 1.7 10.5 8.0

Fidelity National Information Services, Inc. 102.55 33,584 42,075 29.5% 4.3 4.7 4.9 15.8 16.2

Fiserv, Inc. 73.49 29,284 33,886 32.2% 5.7 5.9 5.6 17.9 18.1

Jack Henry & Associates, Inc. 126.52 9,780 9,665 30.9% 6.2 6.2 6.0 19.9 20.0

SS&C Technologies Holdings, Inc. 45.11 11,308 17,262 32.1% 6.4 6.3 3.7 17.1 19.5

Median 73.49 11,308 17,262 29.5% 4.3 4.7 3.7 15.8 16.2

Business Intelligence & Analytics

Splunk Inc. 104.85 15,495 14,504 -15.9% 9.3 9.1 7.2 NM NM

Tableau Software, Inc. 120.00 10,028 9,071 -8.6% 5.2 8.5 7.3 NM NM

Fair Isaac Corporation 187.00 5,415 6,089 22.7% 5.5 5.9 5.4 24.1 26.0

Ceridian HCM Holding Inc. 34.49 4,761 5,245 13.7% NM 6.5 6.6 NM 47.3

Teradata Corporation 38.36 4,534 4,263 7.0% 2.0 1.9 2.0 25.6 27.7

Verint Systems Inc. 42.31 2,762 3,150 13.5% 2.8 2.6 2.4 32.0 19.1

Alteryx, Inc. 59.47 3,650 3,493 -6.8% 11.3 19.2 13.7 NM NM

Cloudera, Inc. 11.06 1,698 1,308 -32.3% 5.8 3.0 2.5 NM NM

MicroStrategy Incorporated 127.75 1,465 766 4.9% 1.7 1.5 1.5 8.7 31.3

Domo, Inc. 19.63 517 409 -113.9% NM 3.1 2.5 NM NM

Cardlytics, Inc. 10.83 232 231 -20.5% NM 1.6 1.3 NM NM

Attunity Ltd. 19.68 421 383 8.8% 2.2 4.9 4.0 NM 55.1

Gridsum Holding Inc. 2.23 69 70 -46.4% 3.6 0.9 0.5 NM NM

Median 38.36 2,762 3,150 -6.8% 4.4 3.1 2.5 24.9 29.5

12.8

14.6

18.0

9.9

Category / Company Valuation Statistics Multiples Data

EV / Revenue (x) EV / EBITDA (x)

NTM

9.1

6.3

7.0

9.9

44.4

69.2

24.1

31.2

10.8

10.0

NM

NM

24.4

24.4

NM

NM

28.6

5.7

Source: SP Capital IQ; ArkMalibu;

EV = enterprise value; LTM = last twelve months; NTM = next twelve months

NM = Not Meaningful




Price Value Value Margin 2017A LTM NTM 2017A LTM



NTM

Enterprise Platform

Microsoft Corporation 101.57 779,805 731,962 41.4% 6.7 6.4 5.7 19.4 15.4

Oracle Corporation 45.15 162,040 171,425 39.9% 4.8 4.3 4.3 12.2 10.8

SAP SE 99.83 119,155 122,564 25.9% 4.8 4.4 4.1 19.1 17.2

International Business Machines Corporation 113.67 103,303 136,019 21.1% 2.2 1.7 1.7 10.5 8.0

Adobe Inc. 226.24 110,435 111,331 35.0% 11.3 12.3 10.0 33.1 35.2

Median 101.57 119,155 136,019 35.0% 4.8 4.4 4.3 19.1 15.4

Industry Vertical

Cerner Corporation 52.44 17,278 16,906 24.1% 4.4 3.2 3.0 15.9 13.5

SS&C Technologies Holdings, Inc. 45.11 11,308 17,262 32.1% 6.4 6.3 3.7 17.1 19.5

Constellation Software Inc. 640.41 13,571 13,517 14.0% 5.4 4.9 4.1 36.2 34.9

Veeva Systems Inc. 89.32 12,978 11,926 25.3% 10.8 14.7 12.2 43.4 58.1

Guidewire Software, Inc. 80.23 6,501 5,718 9.5% 9.7 7.8 7.8 141.0 82.1

athenahealth, Inc. 131.93 5,433 5,387 20.2% 4.6 4.1 3.7 42.1 20.3

CoreLogic, Inc. 33.42 2,692 4,359 22.6% 2.9 2.4 2.5 14.6 10.4

RealPage, Inc. 48.19 4,362 4,679 17.0% 6.2 5.6 4.8 44.7 33.1

Blackbaud, Inc. 62.90 2,977 3,376 16.2% 6.2 4.0 3.9 34.4 24.6

Medidata Solutions, Inc. 67.42 3,993 3,889 14.6% 6.8 6.4 5.4 43.6 43.5

Allscripts Healthcare Solutions, Inc. 9.64 1,684 3,898 4.4% 2.6 1.9 1.8 25.2 42.8

Ellie Mae, Inc. 62.83 2,189 1,917 14.2% 6.8 4.0 3.9 33.2 28.2

Inovalon Holdings, Inc. 14.18 2,161 3,015 20.1% 4.4 6.0 4.9 23.7 29.6

AppFolio, Inc. 59.22 2,028 1,983 13.7% 10.2 11.2 8.8 144.9 81.6

Pluralsight, Inc. 23.55 1,467 1,385 -40.1% NM 6.5 4.8 NM NM

Instructure, Inc. 37.51 1,315 1,144 -24.7% 6.4 5.8 4.7 NM NM

HealthStream, Inc. 24.15 781 606 11.9% 2.5 2.3 2.5 22.6 19.6

Castlight Health, Inc. 2.17 303 240 -22.5% 3.4 1.6 1.5 NM NM

Median 50.32 2,834 3,893 14.4% 6.2 5.3 4.0 34.4 29.6

12.3

22.6

13.5

9.3

12.3

7.0

10.1

9.9

15.4

34.2

43.9

13.2

9.1

17.3

18.9

15.5

22.1

8.9

13.9

15.5

35.4

NM

NM

15.2

57.8



NM = Not Meaningful







NTM

Infrastructure

VMware, Inc. 137.13 56,208 46,921 27.2% 6.1 5.4 4.9 23.3 19.9

ServiceNow, Inc. 178.05 31,925 31,114 2.4% 12.4 12.7 9.8 NM NM

Red Hat, Inc. 175.64 31,046 29,635 19.1% 7.3 9.1 7.9 38.3 50.0

Atlassian Corporation Plc 88.98 21,190 20,223 2.3% 14.3 21.4 16.2 NM NM

Citrix Systems, Inc. 102.46 13,808 14,131 30.7% 3.8 4.8 4.6 13.3 15.5

Splunk Inc. 104.85 15,495 14,504 -15.9% 9.3 9.1 7.2 NM NM

Micro Focus International plc 17.63 7,377 11,395 30.5% 11.3 3.8 3.1 28.7 12.6

F5 Networks, Inc. 162.03 9,823 8,784 31.0% 3.4 4.1 3.9 11.4 13.3

Nutanix, Inc. 41.59 7,450 6,922 -22.7% 6.2 5.8 4.7 NM NM

New Relic, Inc. 80.97 4,612 4,280 -1.4% 9.6 10.4 8.1 NM NM

Pure Storage, Inc. 16.08 3,885 3,185 -9.0% 3.2 2.5 1.9 NM NM

Software Aktiengesellschaft 36.17 2,676 2,565 30.1% 4.0 2.6 2.5 14.0 8.6

Commvault Systems, Inc. 59.09 2,735 2,251 4.2% 2.9 3.2 3.0 NM 84.4

NetScout Systems, Inc. 23.63 1,836 1,984 14.5% 2.4 2.1 2.1 13.5 14.6

Altair Engineering Inc. 27.58 1,940 1,743 6.5% 4.8 4.7 4.2 NM 72.8

SailPoint Technologies Holdings, Inc. 23.49 2,062 1,989 8.2% 9.5 8.3 7.2 86.5 101.8

Appian Corporation 26.71 1,701 1,593 -17.8% 11.5 7.3 6.6 NM NM

Progress Software Corporation 35.49 1,594 1,573 35.2% 4.9 3.9 4.0 14.7 10.7

Endava plc 24.15 1,281 1,226 14.3% NM 4.0 3.3 NM 27.7

A10 Networks, Inc. 6.24 461 337 -7.1% 1.8 1.5 1.4 NM NM

Median 38.88 4,249 3,732 7.3% 6.1 4.7 4.4 14.7 17.7

12.3

36.3

28.6

60.0

12.6

35.3

84.1

NM

9.9

18.3

34.4

18.8

44.4

8.0

9.7

NM

73.2

18.8

8.2

16.9

NM



NM = Not Meaningful







NTM

SaaS

salesforce.com, inc. 136.97 104,782 105,723 9.4% 7.3 8.5 6.9 114.3 89.9

ServiceNow, Inc. 178.05 31,925 31,114 2.4% 12.4 12.7 9.8 NM NM

Workday, Inc. 159.68 35,130 34,738 -8.6% 9.8 13.3 10.4 NM NM

Shopify Inc. 138.45 15,276 13,697 -7.0% 15.8 14.4 10.1 NM NM

Dropbox, Inc. 20.43 8,305 7,432 -26.9% NM 5.6 4.8 NM NM

Veeva Systems Inc. 89.32 12,978 11,926 25.3% 10.8 14.7 12.2 43.4 58.1

DocuSign, Inc. 40.08 6,623 5,962 -51.7% NM 9.2 7.3 NM NM

The Ultimate Software Group, Inc. 244.87 7,657 7,532 10.7% 7.1 6.9 5.8 92.3 64.8

Paycom Software, Inc. 122.45 7,177 7,127 25.5% 11.4 13.4 10.8 54.0 52.8

Aspen Technology, Inc. 82.18 5,816 5,934 44.4% 10.1 12.2 10.6 22.4 29.8

Zendesk, Inc. 58.37 6,248 6,249 -19.4% 8.1 11.4 8.6 NM NM

RingCentral, Inc. 82.44 6,623 6,411 -1.9% 7.7 10.3 8.2 NM NM

Okta, Inc. 63.80 7,046 6,768 -31.6% 10.3 18.6 14.0 NM NM

Pivotal Software, Inc. 16.35 4,291 3,627 -20.8% NM 5.8 4.7 NM NM

New Relic, Inc. 80.97 4,612 4,280 -1.4% 9.6 10.4 8.1 NM NM

RealPage, Inc. 48.19 4,362 4,679 17.0% 6.2 5.6 4.8 44.7 33.1

Blackbaud, Inc. 62.90 2,977 3,376 16.2% 6.2 4.0 3.9 34.4 24.6

j2 Global, Inc. 69.38 3,420 4,127 36.2% 4.0 3.5 3.2 10.7 9.8

HubSpot, Inc. 125.73 4,933 4,685 -7.8% 9.0 9.9 7.8 NM NM

Box, Inc. 16.88 2,421 2,319 -17.1% 5.8 4.0 3.3 NM NM

Median 81.58 6,623 6,330 -1.6% 9.0 10.1 8.0 44.1 42.9

28.0

36.3

57.2

174.4

20.7

34.2

134.1

24.1

26.2

21.1

52.7

35.3

115.9

68.7

NM

NM

73.2

17.3

18.9

7.7

68.6



NM = Not Meaningful







NTM

Security

Palo Alto Networks, Inc. 188.35 17,871 16,291 1.0% 6.6 6.7 5.5 NM NM

Check Point Software Technologies Ltd. 102.65 16,035 14,265 49.9% 8.4 7.5 7.3 16.9 15.1

Symantec Corporation 18.90 12,072 14,675 20.3% 4.7 3.1 3.0 30.1 16.7

Splunk Inc. 104.85 15,495 14,504 -15.9% 9.3 9.1 7.2 NM NM

Fortinet, Inc. 70.43 11,999 10,365 14.3% 4.4 6.1 5.2 37.3 42.3

Trend Micro Incorporated 54.41 7,592 6,146 32.5% 5.0 4.2 3.9 13.8 13.0

Proofpoint, Inc. 83.81 4,580 4,390 -5.9% 9.0 6.6 5.3 NM NM

Zscaler, Inc. 39.21 4,793 4,479 -7.8% NM 21.0 15.4 NM NM

Qualys, Inc. 74.74 2,943 2,617 28.3% 8.8 9.8 8.3 34.3 34.5

FireEye, Inc. 16.21 3,138 3,001 -16.2% 3.4 3.8 3.4 NM NM

Tenable Holdings, Inc. 22.19 2,065 1,801 -24.1% NM 7.3 5.7 NM NM

Mimecast Limited 33.63 2,020 2,053 6.5% 7.0 6.8 5.6 198.3 105.1

CyberArk Software Ltd. 74.14 2,674 2,287 13.2% 4.7 7.3 6.1 39.6 55.1

Carbon Black, Inc. 13.42 911 748 -30.5% NM 3.8 3.1 NM NM

Rapid7, Inc. 31.16 1,473 1,374 -19.2% 3.9 5.9 5.0 NM NM

SecureWorks Corp. 16.89 1,380 1,265 -5.9% 1.3 2.5 2.3 NM NM

F-Secure Oyj 2.65 417 435 6.1% 3.2 2.1 1.8 29.5 34.3

MobileIron, Inc. 4.59 484 382 -22.2% 1.7 2.1 1.8 NM NM

Zix Corporation 5.73 311 287 20.7% 3.2 4.2 3.9 14.4 20.1

Absolute Software Corporation 5.67 230 197 8.8% 2.0 2.2 2.0 60.6 25.1

Median 32.40 2,808 2,452 3.5% 4.7 6.0 5.1 32.2 29.7

20.7

13.8

7.2

44.4

20.5

11.3

78.8

20.9

37.9

13.4

13.4

21.5

37.2

NM

22.0

23.4

NM

33.6

23.4

NM

NM



NM = Not Meaningful

ABOUTArkMalibu advises business owners by making highly informed and relevant recommendations on steps towards finding a great partner or monetizing their businesses. We help you maximize value by effectively conveying your company’s investment merits and minimizing the buyers’ perceived investment risks. As one of the most trusted boutique investment banking firms, we leverage our proprietary process to serve our privately-owned clients based on our experience, creativity, and avoidance of conflicts of interest. We focus our energy and talent on turning culture into capital so that we can creatively deliver value beyond our clients’ expectations.

Sell-Side Focused• ArkMalibu’s unique business model is to focus solely

on sell-side clients• Experienced and expert negotiators motivated to

meet all your goals• No conflicts of interest – other investment banks often

find themselves negotiating against their regular clients on the buyside

Art of the Possible• ArkMalibu has a strong track record of achieving

maximum value for our clients• Creativity to explore less obvious avenues for meeting

our client’s goals and achieving maximum value

Four Boxes Methodology• Proprietary process minimizes buyers’ perceived risks

and unlocks value for your company• Focus on your corporate culture fit

Client Focus• Active senior banker involvement• Financial advocates – effectively execute the client’s

chosen deal strategy• Financial confidants – confidentiality is of utmost

importance

Experienced Team• Our team has decades of M&A experience• Decades of operations, leadership, and strategic

M & A M A R K E T M O N I T O R - ArkMalibu · Software 5 Yr 4 Yr 3 Yr 2 Yr 1 Yr 1,417 1,518 1,394 1,418 1,481 13.5x 15.2x 10.4x 17.9x 14.3x 0 200 400 600 800 1,000 1,200 1,400 1,600

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